BioNexus Gene Lab Corp. (NASDAQ:BGLC) climbed 10% in premarket trading on Tuesday after the precision oncology diagnostics firm announced it had obtained a $500 million equity facility from ARC Group International.

Under the 36-month agreement, BioNexus can choose to issue and sell registered shares of its common stock to ARC whenever it deems appropriate. As part of the arrangement, the company granted ARC 175,000 common shares as a one-time fee, priced at $4.32 per share.

The new facility adds to BioNexus’s existing $20 million At-The-Market program, giving the company more flexibility in raising capital while retaining full control over the timing and scale of any issuance.

“This commitment from ARC strengthens our capital position at a pivotal time for BGLC,” said Sam Tan, Chief Executive Officer of BioNexus Gene Lab Corp. “This Facility is entirely at our discretion and is intended to support milestone-driven initiatives rather than routine financing.”

BioNexus plans to use the expanded funding capacity to advance key strategic goals, including the rollout of its VitaGuard™ minimal residual disease (MRD) platform across Southeast Asia. On November 28, the company finalized a licensing agreement with Fidelion Diagnostics to commercialize the VitaGuard™ MRD test in Malaysia, Singapore, Indonesia, and Thailand.

The financing will also back the company’s push into contract development and manufacturing organization (CDMO) services and support potential therapeutic initiatives, such as a prospective collaboration with BirchBioMed on FS2 — a topical therapy candidate aimed at treating fibrosis and promoting skin regeneration.

As part of the agreement, ARC is barred from owning more than 9.99% of BioNexus’s outstanding shares and is prohibited from short-selling or hedging the company’s securities.

BioNexus Gene Lab stock price

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.